Tesla's stock is working to get its groove back and there is an argument to be made that the share price could be ready to soar from its current levels, CNBC's Jim Cramer said.
He turned to technical analyst Bob Moreno, who Cramer noted called the market-wide bottom in December, to understand how the electric car manufacturer's stock is in prime position to bounce back.
Moreno is publisher of RightViewTrading.com and Cramer's colleague at RealMoney.com.
"We know Tesla's been incredibly volatile ... and with good reason," the "Mad Money" host said. "But the charts, as interpreted by Bob Moreno, say that it's time to buy this stock. He thinks Tesla has limited downside and substantial upside at these levels."
The stock is down more than 14 percent in 2019, but about 13 percent higher than it was one year ago.
Tesla closed at less than $286 on Tuesday, Cramer said the share price, in theory, could reach $380 before bumping into its long-term ceiling. But Moreno contends the stock must burst through a key resistance level.
"[That ceiling is] around $290, up about five bucks bucks from where the stock's currently trading," Cramer said. "If Tesla can cross that threshold, Moreno is betting the stock will fill in the big gap from January and climb to the $340s ... nearly 20 percent up from where it's currently trading."
Tesla's stock hasn't closed north of $347 since Jan. 17.
According to Moreno, recent action in Tesla's short-term daily chart mirrors what's called a Morningstar pattern. That pattern is a three-day course where a large down session is followed by a day of tight-range trading and then a big rally day. That pattern could represent a sentiment change, Cramer explained.
Cramer said this same three-day action occurred in September and October, and the analyst thinks Tesla's stock could be due for another bounce.
The stock price bounced from about $260 in early September to more than $300 by the end of the month, and again from about $250 in early October to more than $376 in mid-December.
"My view: this is a high-risk situation. It's too risky for me, but Moreno's got a great track record. He needs to be taken seriously," Cramer said.
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